American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.
— Alan Greenspan, 2/23/2004 [Source]
Nothing against Mr. Greenspan, but how shaky does that comment appear now that we're witnessing the mortgage- and credit-market after-effects of all those "mortgage product alternatives" gone bad?
This is good, too, from that same article:
Joseph McKenzie, deputy chief economist at the Federal Housing Finance Board, says buyers like the stability of fixed-rate mortgages, but there is increasing flexibility in products. "There are lots of innovative programs, especially targeting low-income and first-time buyers," he says.
Innovative? Is that what they're calling them now, too?
And, for your extended viewing pleasure, watch as Jim Cramer sort of wraps all this up. And oh yeah — goes mental:
